Thunder Stone Technology

About Thunder Stone Technology

Beijing Thunder Stone Technology Co. Ltd. operates as a prominent supplier of karaoke, or KTV, systems in China, demonstrating a significant market presence since its establishment. Founded in 1996 by Ma Jie and Wang Chuan, who is also a co-founder of Xiaomi Corp, the company initially focused on selling multimedia discs before transitioning to video-on-demand (VOD) systems for the KTV industry.

The company's primary business involves providing comprehensive, one-stop software and hardware solutions for commercial KTV venues. This includes its core KTV VOD and an ERP management system. With a substantial music library secured through partnerships with over 450 record companies, Thunder Stone serves an extensive network of over 40,000 KTV parlors, commanding a significant portion of the domestic market share. Revenue is generated through the licensing of these systems to KTV operators and sales of related hardware like audio equipment, amplifiers, speakers, and wireless microphones.

Recognizing shifts in consumer behavior and technology, Thunder Stone has expanded its business into new segments. The company has ventured into the home entertainment market by developing home KTV products, including a collaboration with Xiaomi TV on the "Huanle Gefang" app. A major strategic pivot was the 2017 launch of "WOW House" (WOW哇屋), a brand of mini KTV booths. These self-service, glass-enclosed booths are placed in high-traffic public areas like shopping malls and cinemas, targeting younger consumers and capitalizing on the trend of fragmented leisure time. Users can pay via mobile apps, and their recordings can be sent to their phones for social sharing. This diversification represents a move from a traditional B2B model to include a direct-to-consumer (B2C) component, evolving into a multi-scenario entertainment service provider.